Apple working on a 5″ Retina display device for next year?

Of late, we’ve been hearing plenty of rumors about Apple working on devices with larger displays and today we’ve got one more to add to the mix. According to a Japanese website – Macotakara, Apple is working on a device that features a 5″ Retina Display that will be launched in 2013. The product is also said to have a resolution of 1,600 x 960 or 1,280 x 960. There was no mention if this was going to be a larger iPod touch or iPhone or smaller iPad but it could be a totally new device – or it could be nothing more than just a rumor.

As usual, there isn’t any solid evidence to back up the tale so we advise you to take it in with a pinch of salt but it would be interesting to see if it develops any further. In the meantime, we’ll be keeping our eyes peeled. If Apple were to come up with a 5″ device, what do you think it would be?